Ed Miliband today accused the government knowing "the price of everything and the value of nothing" as he rounded on ministers for pulling the funding for a scheme that gives free books to parents of newborn babies to encourage a love of reading.

The Labour leader said the decision to withdraw all funding from Booktrust, an independent charity which provides book packs for newborns and toddlers through health centres, nurseries and libraries, would deprive young children of an early opportunity to engage in reading.

Booktrust was told last Friday that the Department for Education was withdrawing all of its £13m funding for the scheme in England from April. The government's £13m was used to generate a further £56m worth of sponsorship for the book-gifting schemes from publishing partners and corporate sponsors.

The programme is backed by the devolved administrations in Scotland, Wales and Northern Ireland.

The charity's national book-gifting programmes are well-known and wide-reaching. Bookstart gives a free pack of books to every baby in the UK, Booktime donates a book pack to children shortly after they start school, and Booked Up enables each child starting secondary school to choose a book for themselves. The charity's aim is to give everyone the chance to experience what it calls "the delight and power of books and the written word" regardless of income, literacy skills, disability or culture.

Miliband said that the book-gifting programme was one of the Labour initiatives that gave him most pride.

He rounded on Liberal Democrat ministers for lacking the "courage of their convictions". "The Lib Dem party has pressed the case for giving the poorest children a better start in life," the Labour leader said. "This Conservative-led government knows the price of everything and the value of nothing. The abolition of Bookstart will deprive children of an early opportunity to discover the joy of reading. It is one of the programmes introduced by Labour of which I am most proud.

"It was a gift from the government to the next generation. This week we learnt that many of the Lib Dem ministers privately admit what they are doing is wrong and unfair. They may have convictions but they do not have the courage of them."

Earlier this week, the charity's chief executive, Viv Bird, said she was "immensely surprised and disappointed" and was exploring other options for financial support.

Former children's laureate Michael Rosen described himself as "absolutely appalled and utterly enraged", claiming that the government's decision to cut funding to the book-gifting programmes was "an indication of where the government's priorities lie", and "a classic case of them talking the talk but not really walking the walk".

A spokesman for the Department of Education said: "We believe homes should be places that inspire a love of books and reading. However, in these difficult economic times, ministers have to take tough decisions on spending and the particular fund managed by Booktrust will end at the end of this financial year.

"Booktrust can still apply for funding from different funding streams, such as the Department for Education's voluntary and community sector grant programme for children, young people and families. Additionally, we hope book-gifting schemes will continue to benefit from support from UK publishers, who have always borne the lion's share of the costs of them."